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Apple's (AAPL, Financials) App Store revenue climbed 14% year over year in the first 65 days of 2025, reaching $5.3 billion, according to Bank of America, which cited data from Sensor Tower. Rising consumer expenditure on digital services accounts for the expansion; non-gaming applications are generating more income.
Downloads on iPads and iPhones rose 6%; productivity applications led the way. Driven mostly by ChatGPT, the AI-powered chatbot developed by OpenAI, income from this category surged 52%. With 45 million downloads registered so far, the app almost triples daily active users from the previous year.
With the second-highest download count within the entertainment category, streaming and digital material clearly meet great demand. Gaming income increased 7% but Bank of America analystsled by Wamsi Mohanobserved a change as more developers monetise outside of gaming, thereby broadening App Store income sources.
Launching the Apple TV app for Android devices, including phones, tablets, and foldables, Apple is also extending access to its digital ecosystem. This action enables consumers to access Apple's content catalog free from depending on web browsers.
Reflecting the ongoing success of its subscription-based products and digital sales, Apple's total services revenue climbed 12% year over year.
Citing consistent increase in services income and more general monetization patterns, Bank of America reaffirmed its Buy recommendation on Apple, with a $265 price target.
This article first appeared on GuruFocus.